Focusrite PLC (LON:TUNE) said demand remains high while revenue is “substantially ahead” also thanks to the acquisition of Martin Audio.
The music and audio products group raised the final dividend by 10% to 4.2p per share although profits were depressed by higher costs and write-downs.
READ: Focusrite raises full-year revenue expectations after strong trading
In fact, profit before tax for the year to August 31 was 46% lower at £7mln due to depreciation and amortisation, the non-underlying costs and a £10mln goodwill write-down taken on Martin Audio due to the pandemic.
Revenue climbed 54% to £130mln, with North America up 40%, Europe, Middle East and Africa up 66% and the rest of the world by 60%.
Demand was driven by professional and amateur musicians stuck at home during global lockdowns, although the AIM-listed firm expanded into podcasting, used with services such as Zoom, and for film/TV dubbing for actors at home.
It also launched 11 products since the COVID-19 outbreak.
Year-end net cash balance was £3mln after the purchase of loudspeaker supplier Martin Audio for £35mln, though the debt taken out for the transaction has already been repaid.
Analysts at Peel Hunt increased the target price to 1,148p from 883p.
“We also have to bear in mind that the company is still focused on finding other complementary brands to acquire,” they commented.
“We wouldn’t be surprised if it acquired a headphone/microphone business or looks to materially expand its software exposure with an established app(s).”
Shares rose 1% to 927.2p on Tuesday morning.